General Meeting today Marks transition to Phillips River Mining Ltd Company presentation attached

Transcription

1 Fast Facts Cap Structure June 2011 Issued Shares 513Mil Market Cap A$36Mil Highlights 29 August 2011 SHAREHOLDER MEETING COMPANY PRESENTATION General Meeting today Marks transition to Phillips River Mining Ltd Company presentation attached Directors Hamish Bohannan Non-Exec Chairman Jason Stirbinskis Managing Dir. Andrew Ellison Non Exec Dir. Tony Martin Non-Exec Dir. Company Highlights Substantial resource base Diversified commodities Aggressive exploration Proven management Project DFS complete Contact Details Head Office Unit 46/328 Albany Hwy VICTORIA PARK WA 6100 T: F: E: info@tectonic.com.au Tectonic Resources NL ( Tectonic or The Company, ASX:TTR) will be holding a general meeting today (see Notice of Meeting 25/7/11). A presentation to be given at the meeting is attached. The Company is entering a new phase in its evolution which begins with a number of strategic changes. The new and reinvigorated company will be called Phillips River Mining Limited after the flag ship project. Managing Director Jason Stirbinskis said The Phillips River Project is on the cusp of development and our team are committed to seeing the project enter construction in 2012 and production in Progress to-date is consistent with those targets. On current Reserves the PRP generates ~$1Billion in revenue through gold dore and copper and base metal concentrates sales. The Company is confident that operating life will extend well beyond the initial 10 years given that PRP mines remain open at depth and the Company has a very significant and prospective portfolio in the area. This year's exploration activity at established targets in the portfolio has revealed greater detail and encouraging results particularly at Queen Sheba and Gift South, both of which are extremely close to the PRP sites. For further information please contact: Jason Stirbinskis Managing Director (08) jason.stirbinskis@tectonic.com.au

2 ABOUT TECTONIC Tectonic Resources NL has highly prospective and considerable holdings in Western Australia s southern region near Ravensthorpe, about 180kms from the sea port of Esperance. Tectonic has an exploration office at the Philips River Project, an 88 room camp established in Ravensthorpe and other infrastructure located at its nearby decommissioned RAV 8 mine and processing facility Table1: Philips River Project Reserve Financial Analysis Capital cost ~$133M Total Revenue ~$1.05Billion Life of Mine (LOM) 10 years Gross operating cost over LOM $589M Cashflow before tax over LOM $224M NPV (8%) $72.4M IRR pretax 26% IRR after tax and gearing 22.4% Payback 5 years Development time 15 months Mine Classification Mt Au (g/t) Ag (g/t) Cu (%) Pb (%) Zn (%) Trilogy pit Proved Trilogy Pit Probable Trilogy U/G Probable Subtoal Trilogy Ore Reserve Flag Pit Probable Harbour View Pit Probable Kaolin Pit Probable Flag U/G Probable Harbourview U/G Probable Kaolin U/G Probable Subtotal Kundip Ore Reserve Subtotal Proved Proved Subtotal Probable Probable Total PRP Ore Reserve The Company recently announced the completion of a definitive feasibility study (DFS) for the Philips River Project. The DFS only considers the ores of Trilogy and Kundip and generates a variety of products including gold dore, copper concentrates and bulk sulphide concentrates. The plant is designed such that a wide variety of ores can be processed to extract maximum value. This flexibility of feed and output is critical as it is highly likely that any subsequent gold, copper or base metal discoveries within the Company s substantial holding will be compatible with the plant. Table 2: Key outputs from PRP DFS announced 11/2/11 Competent Person s Statement The information in this report that relates to Exploration Results, and information in this Ore Reserve statement that relates to Mineral Resource estimates defined as part of the June 2010 Mineral Resource are based on information compiled by Mr Bruce Armstrong, who is a Member of The Australasian Institute of Geoscientists. Mr Armstrong is a full time employee of Tectonic, and has sufficient experience which is relevant to the style of mineralisation under consideration to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The information in this Ore Reserve statement that relates to Ore Reserve estimates is based on information compiled by Mr Geoff Davidson, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Davidson is a Principal Consultant and Director of Mining and Cost Engineering Pty Ltd and has sufficient relevant experience to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The Competent Persons have consented to the inclusion in the report of the matters based on their information in the form and context in which it appears. This announcement contains certain statements which may constitute "forward-looking statements". Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance achievements to differ materially from those expressed, implied or projected in any forward-looking statements. No representation or warranty, express or implied, is made by Tectonic that the material contained in this presentation will be achieved or prove to be correct

3 Phillips River Project August 2011

4 Important Notice and Competent Persons Statement This presentation contains certain statements which may constitute "forward-looking statements". Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance achievements to differ materially from those expressed, implied or projected in any forward-looking statements. No representation or warranty, express or implied, is made by Tectonic that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of Tectonic, its officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from. Tectonic accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this presentation or any other information made available to a person nor any obligation to furnish the person with any further information. The information in this report that relates to Exploration Results, and information in this Ore Reserve statement that relates to Mineral Resource estimates defined as part of the June 2010 Mineral Resource are based on information compiled by Mr Bruce Armstrong, who is a Member of The Australasian Institute of Geoscientists. Mr Armstrong is a full time employee of Tectonic, and has sufficient experience which is relevant to the style of mineralisation under consideration to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The information in this Ore Reserve statement that relates to Ore Reserve estimates is based on information compiled by Mr Geoff Davidson, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Davidson is a Principal Consultant and Director of Mining and Cost Engineering Pty Ltd and has sufficient relevant experience to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The Competent Persons have consented to the inclusion in the report of the matters based on their information in the form and context in which it appears. This announcement contains certain statements which may constitute "forward-looking statements". Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance achievements to differ materially from those expressed, implied or projected in any forward-looking statements. No representation or warranty, express or implied, is made by Tectonic that the material contained in this presentation will be achieved or prove to be correct

5 Company Overview Substantial resource base Diversified commodities Aggressive exploration Phillips River DFS complete Phillips River - A robust long life project! Gross revenue LOM ~ $1billion Cashflow pretax over LOM ~ $224M IRR ~ 26% pretax, NPV (8%) ~ $72.5M The Plan Ahead

6 Project Life is likely to extend as we explore and realise the potential of our numerous additional targets James Henry Mt McMahon Railway KUNDIP FED PLP Mt Desmond Gem Restored Hecla No Tree Hill TRILOGY Munglinup Bandalup Gossan Queen Sheba 20 km 2475 sq.km of Tenements

7 Tectonic has a substantial inventory of copper and gold TECTONIC RESOURCES GLOBAL RESOURCE TABLE: FEB 2011 GOLD AND COPPER RESOURCE TABLE: KUNDIP PROJECT AND OTHERS* CATEGORY Mt Au Ag Cu Pb Zn (g/t) (g/t) (%) (%) (%) MEASURED INDICATED INFERRED SUB TOTAL BASE METAL RESOURCE TABLE: TRILOGY PROJECT** MEASURED INDICATED INFERRED SUB TOTAL GLOBAL RESOURCE TABLE: GRADE MEASURED INDICATED INFERRED GRAND TOTAL GLOBAL RESOURCE TABLE: CONTAINED METAL Mt M Oz M Oz t (000) t (000) t (000) MEASURED INDICATED INFERRED GRAND TOTAL Note: *- Based on wire-framing to drill holes on a 1.0g/t Au cut-off for shallow resource and 3.0g/t Au. for deeper mineralisation, and reporting to a 1.0g/t Au cut-off. Includes revised Resource for Queen Sheba announced February **-Based on wire-framing to drill holes on a 0.5% Cu equivalent cut-off and reporting to a 1% Cu equivalent cut-off. Oxide Cu eq. =(Au ppm * 9775)+(Ag ppm * 150.4) +(Cu ppm): Sulphide Cu eq. = (Au ppm *4720)+(Ag ppm * 75.5)+(Cu ppm)+(pb ppm * ) + (Zn ppm * )

8 Phillips River Project- Trilogy Polymetallic deposit producing - Gold silver Copper cons Bulk base metal cons On company owned freehold farmland Owner operator open pit, contracted U/G L.O.M ~ 5.5yrs on current Reserve ~1Mtpa processing facility, with capacity to expand

9 Phillips River Project- Kundip 16.9g/t Au 12.16g/t Au 14.8g/t Au 10kms from proposed Trilogy plant Gold, Silver, Copper deposit producing Gold / silver dore Copper conc 10.9g/t Au 27.5g/t Au 24.7g/t Au Copper precipitate LOM 4.5yrs but potential depth extensions Excellent near mine prospectivity

10 Phillips River Processing Flowsheet Au, Ag ore Au, Cu, Ag ore Au, Cu, Ag, Pb, Zn ore Crushing & grinding Gravity circuit Copper float Lead / zinc float SART circuit Copper Concentrate Bulk Concentrate Gravity Dore ranges from 10-40% of recovered gold Dore Copper / Silver ppt Robust Flow Sheet allows multiple products to be produced-, precious metal concentrates, copper and bulk lead zinc concentrates, precious metal dore and high value copper precipitate

11 Phillips River Project- DFS Summary Financial Analysis Capital cost ~$133M Total Revenue ~$1.05Billion Life of Mine (LOM) 10 years Gross operating cost over LOM $589M Cashflow before tax over LOM $224M 80 Project Revenue (%) NPV (8%) $72.4M Gold & copper Silver Zinc Lead IRR pretax 26% IRR after tax and gearing 22.4% Payback 5 years Development time 15 months Operating cost /t ore (open & ug) $92 Key Assumptions Gold price over LOM 1350/oz Silver price over LOM 25/oz Copper price over LOM 9800/t Zinc price over LOM 2400/t Lead price over LOM 2300/t Assumed debt $40M Assumed equity / hedging $100M Diesel power generation Shipping of cons via Esperance port to Asian/Chinese smelters

12 Phillips River Project- DFS Summary Period Ending - Dec xx Total Payable Metal Silver oz - 106,403 1,171, , , , , ,430 37,335 39,446 50,389 2,101 3,960,320 Gold oz - 5,465 16,893 7,968 6,109 10,004 7,759 73,367 70,349 65,043 61,524 6, ,973 Copper t - 5 5,158 5,768 6,488 5,193 6,978 3,478 1,370 2,095 2, ,028 Lead t - - 2,734 5,817 6,293 3,579 3,827 1, ,369 Zinc t - - 2,601 6,309 8,277 4,636 5,766 2, ,252 Revenue Revenue A$M ,054 Royalties and TC & RC A$M Total Project Revenue A$M Costs Total Operating Costs A$M Capital Expenditure A$M Total Project Costs A$M Project Cash Flow Before Tax A$M (27) (102) Tax A$M Net Cash Flow Before Debt and Eq A$M (27) (102) Cummulative Cash Flow A$M (27) (129) (80) (43) (5) Payback year 6 Relatively uniform revenue generation Large +ve cashflow early years to offset upfront capital

13 Re-branding Name and ASX code Change (effective October 2011) Type Change (NL to Ltd) Share consolidation Office relocation

14

15 Queen Sheba MEASURED INDICATED Tonnes Au Ag Cu (000) g/t g/t % INFERRED TOTAL MEASURED INDICATED QUEEN SHEBA - RESOURCE TABLE: FEB 2011 RESOURCE CATEGORY GLOBAL RESOURCE TABLE: CONTAINED METAL (000) (000 Oz) (000 Oz) (000 t) INFERRED TOTAL Just 2.5k from Trilogy Resource announced Feb 2011 Resource to be recalculated Sept 2011

16 Gift South

17 Munglinup strategic acquisition Grant of 1,667 square kilometers of exploration tenements on Albany- Fraser Belt Prospective for Tropicana style mineralisation Shallow cover and limited historical exploration 30km from Trilogy at nearest point

18 Jan The path ahead. Revised Resources More drill results Gift south # 2 results Phillips River re-brand Munglinup acquisition Production appointments Bank MOU EPC appointed Offtake MOU Project Capital raising 2012 Drill program Production April July Oct Jan April July Oct Jan April July 2011 Queen Sheba #2 results Gift south results Queen Sheba results 2012 Development starts 2013 Commissioning 1 st round bank dialogue Exploration program commissioned Traka acquisition DFS Announced Appointments

19 Thank you. Suite 46/328 Albany Highway Victoria Park WA 6100 T: F: Jason Stirbinskis Managing Director